Procter & Gamble to report third-quarter results: what the market expects

what happened

Procter & Gamble will publish its third-quarter results on Thursday morning. Last quarter the consumer products giant fell slightly short of revenue forecasts, posting $21.2 billion, up 1.5% from a year earlier. Gross margin came in well above estimates, while full-year EPS guidance matched analyst expectations, according to StockStory.

The market expects revenue to rise 2% year on year, slower than the 3% gain recorded in the same quarter last year. Analysts have largely reaffirmed their estimates over the past 30 days. Over the last two years the company has missed Wall Street revenue estimates several times.

The consumer staples sector has been calm, with shares up 1.4% on average over the past month, while Procter & Gamble gained 8.5%. The average analyst price target is $162.13 against a current share price of $158.43. Conagra's revenue fell 1.4% in line with expectations, and General Mills' declined 2.8% but topped estimates by 0.9%. Conagra shares dropped 6.6% after their report and General Mills fell 1.7%.

why it matters

The reaction in Conagra and General Mills shares shows that investors judge even small revenue and margin deviations from forecasts strictly. For Procter & Gamble, the key question is whether it can return to revenue growth and confirm its full-year outlook. Peer results set the tone for the whole group.

market impact

PG and consumer staples: the report and outlook set sentiment across the sector

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